State Bk.in.gdr Regulatory News (SBID)

13 Aug 2007 13:36

State Bank Of India13 August 2007 LIMITED REVIEW REPORT OF UNAUDITED FINANCIAL RESULTS OF STATE BANK OF INDIA FOR THE QUARTER ENDED 30th JUNE 2007 We, the undersigned Auditors, have reviewed the accompanying statement of unaudited financial results of State Bank of India for the quarter ended June 30, 2007. This statement is the responsibility of the Bank's Management. 2 The financial results incorporate the relevant returns of 42 branches reviewed by us, 695 branches reviewed by the Bank's Concurrent Auditors, 13 Foreign Offices reviewed by Local Auditors and unreviewed returns in respect of 8844 branches (including 21 Foreign Offices). In the conduct of our review, in addition to 42 branches reviewed by us, we have taken note of the review reports in respect of non-performing assets received from the Bank's Concurrent Auditors of domestic branches and local auditors of foreign offices aggregating to 708 branches/offices. This review covers 58.57% of the advances portfolio excluding outstanding of asset recovery branches and food credit advance of the bank. Further, this review also covers 53.25% of Non Performing Advances (NPAs) as on June 30, 2007. 3 A review of interim financial information consists principally of applying analytical procedures for financial data and making enquiries from persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express an audit opinion. 4 Based on our review conducted as above, and subject to (i) non compliance of AS 15 (Revised 2005) for the reasons stated in note no. 2, the effect of which remains to be ascertained (ii) creation of additional provisions of Rs.200/- crores towards NPAs, as stated in note no.3, which has resulted into operating profile for the quarter being lower by Rs.200/- crores and net profit for the quarter being lower by Rs. 132.02 crores, nothing has come to our notice that causes us to believe that the accompanying statement of unaudited financial results has not disclosed the information required to be disclosed in terms of Clause 41 of the Listing Agreement including the manner in which it is to be disclosed, or that it contains any material misstatement or that it has not been prepared in accordance with the relevant prudential norms issued by the Reserve Bank of India in respect of income recognition, asset classification, provisioning and other related matters. Vardhaman & Co., Chartered Accountants V. Baskaron Partner: M.No. 012202Mumbai, 28th July 2007. STATE BANK OF INDIA UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2007 (Rs.in crores) Quarter ended Year ended Particulars 30.06.2007 30.06.2006 31.03.2007 (Reviewed) (Reviewed) (Audited) 1 Interest Earned (a) + (b) + (c) + (d) 11386.51 8857.20 39491.03 (a) Interest/discount on advances/bills 7988.52 5462.35 24839.18 (b) Income on Investments 2894.36 2940.21 11492.99 (c) Interest on balances with Reserve Bank of India and other interbank funds 497.06 444.33 2719.61 (d) Others 6.57 10.31 439.25 2 Other Income 842.58 709.59 5769.25 (A) TOTAL INCOME (1+2) 12229.09 9566.79 45260.28 3 Interest Expended 6889.12 4946.59 23436.82 4 Operating Expenses (e)+(f) 2978.51 2814.58 11823.52 (e) Payments to and provisions for employees 2026.37 1924.29 7932.58 (f) Other Operating Expenses 952.14 890.29 3890.94 (B) TOTAL EXPENDITURE (3)+(4) 9867.63 7761.17 35260.34 (excluding Provisions and Contingencies) (C) OPERATING PROFIT (A-B) 2361.46 1805.62 9999.94 (Profit before Provisions and Contingencies) (D) Provisions and Contingencies (net of write-back) 159.37 251.14 2409.64 --- of which provisions for Non-performing assets 506.28 171.55 1429.50 (E) Provision for Taxes 776.28 755.91 3048.99 --- of which provisions for Fringe Benefit Tax (FBT) 26.00 92.50 88.50 (F) NET PROFIT (C-D-E) 1425.81 798.57 4541.31 5 Paid-up equity Share Capital 526.30 526.30 526.30 6 Reserves excluding revaluation reserves (as per balance sheet 30503.66 27117.79 30503.66 of previous accounting year) 7 Analytical Ratios (i ) Percentage of shares held by Government of India 59.73% nil nil (ii) Capital Adequacy Ratio 13.13% 11.97% 12.34% (iii) Earnings per Share (in Rs.) 27.09 15.17 86.29 (not annualised)(not annualised) (iv) (a) Amount of gross non-performing assets 10757.57 9720.70 9998.22 (b) Amount of net non- performing assets 5504.61 4832.61 5257.73 (c) % of gross NPAs 3.13% 3.64% 2.92% (d) % of net NPAs 1.62% 1.84% 1.56% (v) Return on Assets (Annualised)0.94% 0.64% 0.84% 8 Aggregate Non promoters' Shareholding .. .. .. No. of shares 211959678 211959678 211959678 .. .. .. % of shareholding 40.27% 40.27% 40.27% Unaudited Segment-wise Revenue, Results and Capital Employed (Rs.in crores) Quarter ended Year ended Particulars 30.06.2007 30.06.2006 31.03.2007 (Reviewed) (Reviewed) (Audited) 1 Segment Revenue (income) a Banking Operations 12848.40 9597.84 44472.16 b Treasury Operations 2319.17 2575.64 11464.20 Total 15167.57 12173.48 55936.36 Less : Inter Segment Revenue 2938.48 2606.69 10739.92 Net Income from Operations 12229.09 9566.79 45196.44 2 Segment Results (Profit before tax) a Banking Operations 2885.37 1862.75 8706.06 b Treasury Operations -316.71 -147.01 117.73 Total 2568.66 1715.74 8823.79 Add/Less unallocated 366.57 161.26 -1233.98 Profit before Tax 2202.09 1554.48 7589.81 Less : Income Tax (including FBT) 776.28 755.91 3048.50 Net Profit 1425.81 798.57 4541.31 3 Segment Assets a Banking Operations 428911.94 219714.80 428911.94 b Treasury Operations 206373.26 382211.31 206373.26 c Unallocated 2539.32 2583.13 2539.32 Less : Eliminations 71259.28 110480.29 71259.28 Total 566565.24 494028.95 566565.24 4 Segment Liabilities a Banking Operations 401013.33 216599.31 401013.33 b Treasury Operations 202973.32 357682.71 202973.32 c Unallocated 18018.85 812.08 18018.85 Less : Eliminations 86738.82 108709.24 86738.82 Total 535266.68 466384.86 535266.68 ( Segment Assets and Liabilities are as on 31st March of the previous year ) 1 The working results for the quarter ended 30th June 2007 have been arrived at after considering provisions for NPAs, Gratuity, Pension, Leave Encashment, Investment Depreciation, Income Tax (after adjustment for deferred tax), Wealth Tax, Fringe Benefit Tax (FBT) and Other Contingencies on an estimated basis 2 Pending issuance of a limited revision of AS-15 (Revised 2005) by the ICAI relating to transitional provisions, the Bank has deferred compliance of AS-15 (Revised 2005) and has made adequate provisions as per AS-15 (1995). 3 During the quarter, the Bank has made an additional provision of Rs.200/- crores, over and above the RBI norms, towards non-performing advances as a measure of risk mitigation 4 As required by RBI, the Bank has deducted the amortization of premium on Government Securities (which was earlier included in 'Other Provisions and Contingencies') from 'Other Income'. Prior period figures have been reclassified to conform to the current classification 5 During the quarter, the Bank has acquired 7300 shares of its subsidiary Indian Ocean International Bank Ltd. (IOIB) Mauritius, increasing its stake in IOIB from 56.84% to 56.89%. 6 During the quarter, the Bank has raised USD 225 million (Rs.915.86 crores) as Hybrid Tier I Capital in the form of Perpetual Non Call 2017 Bonds 7 During the quarter, the entire share holding of Reserve Bank of India in State Bank of India (aggregating 31,43,39,200 equity shares (59.73%), with a face value of Rs. 10/- each) has been transferred to the Central Government. 8 During the quarter, the Bank has shifted SLR investments having aggregate Face Value of Rs.9081.57 crores (quarter ended June '06 - Rs.9400 crores) from 'Available for Sale' (AFS) category to 'Held to Maturity' (HTM) category, resulting in a net revaluation loss of Rs.297.67 crores (quarter ended June, 2006 - Rs.225.73 crores). 9 Previous period figures have been regrouped/reclassified, wherever necessary, to conform to current period classification. The above results have been taken on record by the Central Board of the Bank on the 28th July 2007 and were subjected to Review by the Auditors T. S. BHATTACHARYA O. P. BHATT Managing Director & Group Executive CHAIRMAN (Corporate Banking) In terms of our Review Report of even date. This information is provided by RNS The company news service from the London Stock Exchange